Table 4. Results of logistic regression...

Table 4.

Results of logistic regression and system GMM

Panel A. Logistic regression					Panel B. System GMM
Variables	E(Sign)	Model I		Model II	Variables	Model I	Model II
FS Ratio	+	0.015*** (0.002) 1.015		0.016*** (0.002) 1.016	Foreign Sales (FS)	0.00002*** (0.00007)	0.00003*** (0.00001)
LnTFCF	+	0.152*** (0.018) 1.164			LnTFCF	0.00020*** (0.00005)
LnnFCF				0.124*** (0.017) 1.132	LnNFCF		0.00012** (0.00005)
SHA	−	0.373** (0.154) 1.452		0.362** (0.154) 1.437	SHA	−0.00055 (0.00060)	−0.00021 (0.00060)
Control
LnTA	+	0.502*** (0.044) 1.652		0.528*** (0.04) 1.696	LnTA	−0.00016 (0.00016)	−0.00021 (0.00015)
MTBV	+	0.065*** (0.019) 1.067		0.072*** (0.019) 1.075	MTBV	0.00013*** (0.00004)	0.00013*** (0.000039)
ICR	−	0.003 (0.003) 1.003		0.002 (0.003) 1.002	ICR	0.00003*** (0.00001)	0.00003*** (0.00001)
SR	+	−0.225*** (0.074) 0.798		−0.214*** (0.074) 0.807	SR	−0.00041*** (0.00015)	−0.00035** (0.00016)
					NV/TA (−1)	0.69980*** (0.00434)	0.69951*** (0.00421)
Diagnostic tests
Hosmer and Lemeshow			0.671	0.624	No of Instruments	112	112
Area under ROC curve			0.839	0.832	No of Groups	250	250
Pseudo R²			0.265	0.253	AR2	0.763	0.765
Likelihood Ratio (p-value)			0.000	0.000	Hansen test	0.929	0.904
					Diff-in-Hansen test	0.898	0.912
					Wald test	0.000	0.000

Panel A. Logistic regression					Panel B. System GMM
Variables	E(Sign)	Model I		Model II	Variables	Model I	Model II
FS Ratio	+	0.015***(0.002)1.015		0.016***(0.002)1.016	Foreign Sales (FS)	0.00002***(0.00007)	0.00003***(0.00001)
LnTFCF	+	0.152***(0.018)1.164			LnTFCF	0.00020***(0.00005)
LnnFCF				0.124***(0.017)1.132	LnNFCF		0.00012**(0.00005)
SHA	−	0.373**(0.154)1.452		0.362**(0.154)1.437	SHA	−0.00055(0.00060)	−0.00021(0.00060)
Control
LnTA	+	0.502***(0.044)1.652		0.528***(0.04)1.696	LnTA	−0.00016(0.00016)	−0.00021(0.00015)
MTBV	+	0.065***(0.019)1.067		0.072***(0.019)1.075	MTBV	0.00013***(0.00004)	0.00013***(0.000039)
ICR	−	0.003(0.003)1.003		0.002(0.003)1.002	ICR	0.00003***(0.00001)	0.00003***(0.00001)
SR	+	−0.225***(0.074)0.798		−0.214***(0.074)0.807	SR	−0.00041***(0.00015)	−0.00035**(0.00016)
					NV/TA (−1)	0.69980***(0.00434)	0.69951***(0.00421)
Diagnostic tests
Hosmer and Lemeshow			0.671	0.624	No of Instruments	112	112
Area under ROC curve			0.839	0.832	No of Groups	250	250
Pseudo R²			0.265	0.253	AR2	0.763	0.765
Likelihood Ratio (p-value)			0.000	0.000	Hansen test	0.929	0.904
					Diff-in-Hansen test	0.898	0.912
					Wald test	0.000	0.000

Notes:

For definitions of variables, refer to Table 1. In all models, N = 2,250 firm-year observations. In Panel A, the dependent variable is a binary variable HS, and figures in each cell correspond to the coefficient value, standard errors in parenthesis and odds ratio. In Panel B, the dependent variable is the notional value ratio (NV/TA), and figures in each cell correspond to the coefficients and standard errors in parenthesis. ROC stands for the receiver operating characteristic. Asterisks ***, ** and * indicate significant at 1, 5 and 10% levels, respectively

[ViewLarge]

Sharing Unavailable